SBS Philippines Corp., a chemical-trading company led by the Sytengco family, is planning to list in the Philippine Stock Exchange (PSE) to raise P1.15 billion through its initial public offering (IPO).
According to its preliminary prospectus filed before the Securities and Exchange Commission, SBS will sell up to 420 million of its common shares for an offer price of P2.75 per share.
BDO Capital and Investment Corp. is the sole issue manager, underwriter and bookrunner for the said transaction. The company has a total authorized stocks of 780 million shares.
Its IPO is eyed between June 8 and 15, 2015, while it will be listed in the PSE on June 22, according to its preliminary schedule.
“The company intends to use the net proceeds from the offer primarily for the expansion of its product offering, investment in capital expenditures to promote operational efficiencies, retirement of certain term loan and for working capital purposes,” the company said in its filing. SBS said most of the proceeds will be used to expand its product offering and invest operational efficiencies at P660 million.
It will also be used to retire a P280-million term loan, while another P158 million will be used to fund its working capital.
Last year SBS said it earned some P100.17 million or more than its profit of P60.33 million in 2013 and P39.6 million in 2012.
SBS claims to be one of the major chemical trader-distributors in the Philippines, supplying more than 1,800 customers, with over 3,000 chemical products sourced from 500 suppliers.
It registered sales of P933.08 million in 2014, up from P785.95 million the prior year.
The company offers a selection of chemical products to clients in food ingredients, industrial, feeds and veterinary care, pharmaceutical, personal care and cosmetics.
It boasts of “deep industry knowledge and value-added services” on logistics management, which provides the company with distinct competitive advantage as the one-stop-shop resource for its customers’ requirements.
It also had some real-estate assets, and the gains from these counterbalance some of the fluctuations in the chemicals business.
The Sytengco family owns directly and indirectly 93.2 percent of the company pre-IPO. Post IPO, it will be reduced to 60.6 percent.
The company was incorporated in July 2001 and was formerly known as Sytengco Philippines Corp. It changed its name to the present one in October last year.
VG Cabuag